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What Properties of eUSD Function Similarly to Money?
Money generally has four functions:
- A store of value
- A medium of exchange
- A unit of account
- A standard of deferred payment
eUSD has properties and use cases designed to serve these functions.
- eUSD as a Store of ValueA store of value is an asset that retains its value over time. Since eUSD is a stablecoin, it is designed to maintain its value even in volatile markets.
- eUSD as a Medium of ExchangeA medium of exchange is anything that represents a standard of value and facilitates the trade of goods or services. As a stablecoin, eUSD can be used worldwide for transactions.
- eUSD as a Unit of AccountA unit of account is a standardized measurement of value used to price goods and services (e.g., USD, EUR, YEN). eUSD currently has a target price of 1 USD (1 eUSD = 1 USD). While eUSD is not used as a standard measurement of value outside of the Lybra Protocol, it functions as a unit of account within the protocol and within some other blockchain dApps, where the accounting or pricing of dApp services is in eUSD rather than a fiat currency like USD.
- eUSD as a Standard of Deferred PaymenteUSD is used to settle debts within the Lybra Protocol (e.g., users utilize eUSD to repay loans and redeem their collateral assets).
- eUSD as an Interest-Bearing AsseteUSD holders can receive regular stable interest income on a daily/weekly basis, or they can stake eUSD to provide eUSD/ETH liquidity and earn staking rewards. By offering interest income, eUSD serves as an attractive option for users looking for stable value and potential returns on their holdings.
Last modified 8mo ago